Economy
Nigeria, Others Lose $1tn to Oil Price Slide
- Nigeria, Others Lose $1tn to Oil Price Slide
Nigeria and other member countries of the Organisation of Oil Exporting Countries have in the last two years lost over $1tn to the prolonged slide in crude oil prices.
The Secretary General, OPEC, Mohammad Barkindo, gave the figure when he spoke to journalists on the sidelines of the International Monetary Fund/World Bank annual meetings in Washington DC, United States of America on Saturday night.
Barkindo said, “For the first time in recent memory, we are not only having three consecutive years of depressed oil prices, but we are also seeing contraction in capital investments, particularly in the upstream for three consecutive years. OPEC member countries alone, in the last two years, have lost over $1tn in terms of revenue.
“In terms of investment into this industry, we saw a contraction of about 26 per cent in 2015 and in this year, so far we are projecting a further contraction of 22 per cent. Now, this is a very serious development that is threatening future supply to the global community with its consequences on the fragile economies as you have heard from the IMF.”